Buying a car in Portugal
If you’re considering buying a car in Portugal, there are a few things that you should pay attention to.
So you have decided to create a new life in Portugal. You’ve already chosen the city, your visa is in order, you have a new house… But what about transport? Buying a car in Portugal is another important step in your relocation process that cannot be rushed.
In this article, see if it is worth investing in your own vehicle, new or used, at a dealership or privately, to buy or lease.
Also, find out tips from other ex-pats that have been through this and learn from their mistakes. Good reading!
Is buying a car in Portugal worth it?
Well, it depends on your needs and financial capacity. One of the main decisions when moving from your country to Portugal and creating a new home has to do with transport.
Buying a car in Portugal can be a great deal for your family, especially if you don’t want to rely on public transport.
While living in Lisbon or living in Porto, the biggest cities in Portugal, you’ll see that the public transport systems work very well. From trams to buses, trains, and subways, it is generally very punctual and not that expensive.
So, if you’re not going out of the city centres, it might not even be worth it to buy a car. However, living on the outskirts can also mean you need a car.
Furthermore, if you want to explore Portugal on your own, you should definitely consider getting yourself a car. If you’re planning to live in the Algarve, or Alentejo or Centro, you’ll feel the need to have your own vehicle to take you places.
Of course, there is always the option of ordering a taxi or renting a car for a while, but having your own car makes living in Portugal much more comfortable.
What you should know before buying a car in Portugal
Before choosing to buy a car in Portugal, it is good to pay attention to some specific facts of bureaucracy and day-to-day life on Portuguese roads.
Importing cars into Portugal may be very expensive
If you want to bring your car, with a third country license plate, to Portugal, think twice. Vehicle import taxes are very high.
So much so that, although the price of cars in Portugal is on average much higher than in other European countries, taxes make importing even more expensive.
To start with, cars with less than 6 months of registration or less than 6,000 km are considered new. Therefore, you will always be charged 23% of the car’s IVA, Imposto Sobre Valor Acrescentado (VAT) price in Portugal, regardless of whether you paid it in the country of origin.
Parking in Portugal can be tricky
Remember how the streets of the Portuguese city you are going to live in are. Are they narrow and cobblestoned? Is the city very hilly? Does the place where you will live have a garage or will you have to find a parking space on the street?
A valuable tip is to get a car with good suspension and preferably a tall one. In addition, you will be luckier if you don’t choose a car that is too long and that better fits in tight spaces and manages to adapt to old narrow Portuguese streets. You never know when your driving skills are going to be tested!
Know your taxes
Portugal, like all European countries, is known for taxing vehicles well. The taxes that a vehicle owner in Portugal, regardless of nationality, should be aware of are:
ISV (Imposto Sobre Veículo): a registration tax paid once when the vehicle is registered for the first time in Portugal, whether it’s new or used;
IUC (Imposto Único de Circulação): an annual tax levied on the ownership of a vehicle, paid until the registration is cancelled. Values are updated annually and vary according to the vehicle’s registration year and engine displacement.
You can simulate how much your car’s taxes would be in Portugal on the reference site Imposto Sobre Veículos, available in Portuguese.
Fuel isn’t cheap
Besides that, fuel prices in Portugal are also among the most expensive on the European continent. Check the table below for a price comparison between Portugal and other countries on different fuels:
Country Gasoline price per litre Diesel price per litre
Portugal €1.661 €1.499
United States €0.863 €0.842
Spain €1.471 €1.339
UK €1.710 €1.751
Germany €1.584 €1.507
South Africa €1.103 €1.102
Values are taken from the Global Petrol Prices website and are accurate as of December 2021.
Don’t forget about warranties, insurance, and inspections
A safety recommendation is that, when buying a car in Portugal, make a deal that includes a warranty of at least 1 year. Dealerships offer this, and especially with used cars, it’s a good idea.
In addition to taxes, you should also take into account that you will have to spend on mandatory Liability Insurance. Many dealerships also sell insurance, which usually costs around €250 per year.
Periodic inspections are also important to keep in mind if you’re buying a car. In Portugal, all cars with more than 4 years of registration are subject to mandatory periodic inspections. They cost around €30 and guarantee that your car is in condition to circulate on public roads. You must take your vehicle to an Inspection Centre near your home by the scheduled date. Know when to take your car for inspection in the IMT Vehicle Inspection Simulator.
Where to buy a car in Portugal?
To buy a new car in Portugal, there are several good dealerships across the country to serve you and provide a first-class service.
But if your goal is to buy a semi-new car with little mileage, it’s worth looking online at car sales websites. The main ones are:
Many dealerships advertise their cars on these sites, and the search process is much easier for the buyer. If you want to sell your car, these websites could also be your best option.
When buying a car online in Portugal, pay attention to the details of the vehicle. Mainly about who is selling, whether it is a stand or private sale. Pay extra attention in the case of sales by owners, it is always good to be careful.
Other than that, pay attention to the year, mileage, up-to-date revisions, photos, and so on.
It is not uncommon to visit several cars until you buy the ideal one, or buy in cities other than the one you live in. Portugal is not that big, and most times sellers are in other areas.
How much do cars cost in Portugal?
According to our research carried out on the cost of living in Portugal in December 2021:
Volkswagen Golf 1.4 90 KW Trendline (new or equivalent) car is in the €25,000 range;
Toyota Corolla Sedan 1.6l 97kW Comfort (new or equivalent) sells for at least €31,480.
Used cars in Portugal, with a sudden increase in demand after the pandemic, had a price increase up to 20%. The data reported by Público newspaper in November 2021 is due to the shortage of chips needed for the production of new cars, which generated a delay of up to 12 months for deliveries.
Data from the Standvirtual website published by the Observador newspaper show that average increases in the prices of the following types of cars:
Used sedan, advertised for sale, costs an average of €21,500, an increase of 10% compared to December 2020.
A used SUV in 2021 had average prices between €21,000 and €21,500, while in 2020 the value would go from €19,500 to €20,000. Very unusual, but a picture of the pandemic in Portugal.
Buying a car in Portugal: documents and registration
Once the car has been chosen, it is time for purchase and mandatory registration.
To register a car in your name, you can go in person to a Conservatória do Registo Automóvel (car registration office) or a Loja do Cidadão. Or, if you prefer to do it online, through the Automóvel Online platform.
This procedure can be performed either by the vehicle owner or by its legal representative. In case the car is used, you must update the registration in the same places.
It is also worth remembering that only residents in Portugal can buy and register a car in their name.
As the vehicle owner, you must submit the following documents for registration:
NIF (Tax Identification Number);
Valid residence card or passport;
Proof of permanent residence in Portugal.
Don’t worry, to buy a car in Portugal, you can use your driver’s license from your country of origin, as long as it is valid.
How can a foreigner get a drivers license in Portugal?
If you want to drive in Portugal, you’ll also have to think about how to get a Portuguese driver’s license. Especially if you’re not an EU citizen.
So, to get a driver’s license in Portugal, you can either:
Take the driving test in Portugal from scratch, in Portuguese;
Exchange your driver’s license from your country for the Portuguese one.
In addition, the Portuguese law of 2020 provides that new residents transfer their driver’s license to Portugal within a maximum of 2 years of residence in the country.
If you choose to take the driver’s test in Portugal completely from scratch, you will have the advantage of learning the traffic laws in Portugal with a professional.
But, if changing your driver’s license for a Portuguese one is simpler for you, it’s worth it. Attention, to be able to exchange your driver’s license for a Portuguese driver’s license, you have to fulfil some prerequisites.
The process of exchanging a driver’s license from a foreign country for a Portuguese one is simple and can be done by foreigners with regular residence in the country. That is when you already have your visa in hand or a valid residence card.
Depending on whether your and your license’s country has an international agreement or is part of a convention with Portugal or not, the rules for exchanging it changes a little.
How to exchange my driver’s license for the Portuguese one?
The procedure below can be done by citizens from Australia, New Zealand, Barbados, the United States of America, Canada, South Africa, South Korea, the United Kingdom, Ireland, and many others.
Although your own driver’s license can be accepted in the first 185 days of your entry to Portugal, then you will need to adapt to the new country.
In your first 90 days in Portugal, you can request the exchange of your driver’s license from your country for the Portuguese one at the IMT (Institute of Mobility and Transport), the government agency that handles the area. However, you can still drive on a license issued by your own country.
If you have been in Portugal for more than 90 days, your foreign driver’s license will no longer be valid. However, you can still apply to IMT for an exchange of up to 2 years of residence in the country.
To apply, you must send IMT the following documents properly scanned:
Exchange of Foreign Driving License filled application;
Health certificate issued by a doctor in Portugal;
Residence permit;
Certificate of authenticity of the driver’s license issued by consular services;
Your driver’s license;
A certified translation of your driver’s license, if the content is in any language other than Portuguese, French, English or Spanish.
In addition to sending the documents, you must pay a €30 fee. Then, send this information to IMT via the official email.
Once all is sent and paid, you will be asked to go in person to an IMT near you for the collection of your biometric data.
If you’ve been living in Portugal for 2 years and have never applied for a Portuguese license, time is up. You can no longer exchange it. You will have to pass a practical driving test in Portugal.
In addition to knowing all the bureaucracy involved in buying a car in Portugal, don’t underestimate the oldest method in the world: word of mouth.
Knowing the opinion of other ex-pats in Portugal, as well as tips and recommendations, can help you find the best car at the best price and of course, if you’re in a good relationship with the locals, nobody knows Portugal better than the Portuguese people.
Ask around, get second opinions, and learn from others’ mistakes. Like any type of purchase, there are a lot of things that involve getting a new car. Don’t be shy to get guidance to adapt better to a new country.
And don’t forget, for everything you need in your relocation process to Portugal, you can count on Viv Europe‘s team of professionals.
Article by VIV Europe - Official Legal Partner to KipperTree.
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We hope this article was helpful in your research. Drive carefully, and we’ll see you in Portugal!